OCEANSIDE: Officials hoping to save redevelopment projects

Oceanside officials took steps Tuesday aimed at saving whatever
money they can from the dissolution of the city's redevelopment
agency, caused by a recent court ruling that abolishes such
agencies statewide.

At the urging of City Manager Peter Weiss, the City Council
voted unanimously Tuesday to name itself as the successor to the
city's redevelopment agency to wind down agency affairs.

Weiss and City Attorney John Mullen said the move was critical
if the city is to retain any control over what happens with
unfinished redevelopment projects and those still in the planning
stages.

Still unresolved is whether the city will be able to spend $11
million in bond money that's on the books for redevelopment
projects in general, but not allocated to specific projects.

Weiss said the law dissolving redevelopment agencies requires
outstanding bond money to be spent on projects for which the bonds
were sold.

In Oceanside, those projects include $2.25 million to
reconfigure and spruce up Mission Avenue downtown and construction
of at least one downtown parking garage, which Weiss said could
cost $7 million to $8 million.

Oceanside's redevelopment area covers downtown east of
Interstate 5 between Harbor Drive and Wisconsin Avenue.

The city also had plans to put in new restrooms at the beach and
build a second downtown garage, but Mullen said the new law
dictates that redevelopment agencies or their successors can't
enter into any new contracts to actually do the work.

Officials also said Tuesday that the city stands to lose $19
million under the change. That's money that the redevelopment
agency owes Oceanside for loans the city made to it in the 1980s,
when a series of major redevelopment projects was just getting
started.

Those projects included a new City Hall, the Civic Center
Library, restoration of the beach amphitheater, reconstruction of
The Strand, several parking lots, a downtown transit center and
relocation of downtown railroad yards.

The loans would have been repaid with tax money collected in the
future by the redevelopment agency, redevelopment manager Kathy
Brann said.

Mullen said that under the new law, such loans cannot be repaid;
but he said at least one city has challenged the law in court, and
the California Redevelopment Association may do the same.

Councilwoman Esther Sanchez said Oceanside should join any court
challenges aimed at collecting the money that redevelopment
agencies owe their cities.

"I urge that we go forward and get as much out of this as
possible," Sanchez said.

Redevelopment agencies across the state were eliminated as part
of Gov. Jerry Brown's budget plan approved by the Legislature last
year.

The plan was challenged in the state's Supreme Court, but was
ultimately upheld in a ruling earlier this month. The agencies were
set to be eliminated by Feb. 1, but Weiss said legislation has been
filed to delay the dissolution until April 15 to give cities more
time to figure out what to do next.

Legislation also is pending to allow cities to retain
redevelopment money that was set aside for affordable housing
projects, Weiss said.

Oceanside has about $2.2 million set aside for such projects,
including the Mission Cove development that would provide 288
affordable apartments and condominiums on Mission Avenue near the
city airport.

Mayor Jim Wood said he was "frustrated" by the state action
dissolving redevelopment agencies.